Property experts, including TV presenter Kirstie Allsopp, have called on Chancellor Rachel Reeves to abolish stamp duty in the upcoming budget, labelling it a 'sin tax'. Allsopp, known for Channel 4's Location, Location, Location, told MPs on the Treasury committee that people are 'in a panic' over potential changes and are 'sitting tight' ahead of the 26 November budget.
Allsopp argued that stamp duty punishes homeowners for moving to more expensive properties, saying: 'You are actually punished for wanting to buy a more expensive property than the previous one, and that is wrong.' She warned against treating property purchases as a sin, comparable to taxes on cigarettes and alcohol.
The Treasury is reportedly considering a new tax on home sales above £500,000 as part of a broader overhaul of stamp duty and council tax. Changes to capital gains tax relief on main homes and a 'mansion tax' on expensive properties are also under consideration.
Taylor Wimpey, a major UK housebuilder, reported a drop in autumn sales, blaming pre-budget uncertainty. Other experts echoed calls for abolition. Kate Willis of the Chartered Institute of Taxation noted that while stamp duty is easy to collect, economists agree it distorts economic activity. Richard Donnell of Zoopla highlighted that 40% of first-time buyers would pay stamp duty, with an average bill of £16,000.
Tim Leunig, a former adviser to Rishi Sunak, proposed replacing stamp duty with an annual property tax for homes above £500,000, suggesting a 0.54% yearly levy. He warned that simply abolishing stamp duty could inflate house prices, especially in London. Allsopp cautioned that a mansion tax on properties over £2m could lead to valuations just below the threshold.
